UPDATE 1-Crane to buy privately held MEI Conlux for $820 mln
* Deal to add about 25 cents/shr to Crane earnings within 1st year
* Synergies to grow to $25 mln a year pre-tax by 2015
Dec 20 (Reuters) - U.S. diversified manufacturer Crane Co said it will buy MEI Conlux Holdings and its Japanese affiliate for about $820 million from Bain Capital and Advantage Partners to deepen its footprint in the payment solutions segment.
Crane expects the MEI deal to add to earnings within the first year of acquisition by about 25 cents per share, including 5 cents in synergies.
"We expect synergies to grow to $25 million annually on a pre-tax basis, or 30 cents per share in 2015," Crane Chief Executive Eric Fast said in a statement.
MEI is a manufacturer of electronic bill acceptors, coin mechanisms and other unattended transaction systems.
"This acquisition is consistent with our strategy of niche market leadership," Fast said.
Fast also said the MEI deal would materially strengthen the company's existing payment solutions business, which has grown through three acquisitions beginning in 2006.
Crane said that it intends to finance the deal through a combination of cash on hand and additional debt.
MEI Conlux had sales of about $400 million in 2012, and employs 820 people worldwide. Crane's payment solutions business had annual sales of $175 million. On a pro forma basis, the combined sales of MEI and Crane Payment Solutions will be about $575 million in 2012.
In recent years Crane has invested over $220 million to grow its payment solutions business. In 2006 Crane bought Cash Code, which specializes in bill validation and dispensing devices, and Telequip, which provides coin dispensing equipment.
Crane acquired NRI, a European coin validation and dispensing business, in 1985 as part of the acquisition of UniDynamics Corporation.